Latest news with #AnchorageDigital
Yahoo
2 days ago
- Business
- Yahoo
Anchorage to Phase Out USDC, Agora USD Citing Risks, Stirring Fierce Backlash
Anchorage Digital, a crypto custodian and federally chartered bank, said it will start phasing out and direct institutional clients to convert USDC USDC and other stablecoins into rival token Global Dollar (USDG) in a sweeping move that drew criticism from industry players. The firm released a "Stablecoin Safety Matrix" that ranks stablecoins based on regulatory oversight and reserve asset management on Tuesday. Circle-issued USDC, which is the second-largest stablecoin with a $61 billion supply and is popular among institutions, was deemed no longer suitable under Anchorage's security framework. Two other, smaller tokens, Agora USD (AUSD) and Usual USD (USD0), were also slated for removal. Stablecoins are cryptocurrencies with their prices tied to an external asset, predominantly to the U.S. dollar. "Following our Stablecoin Safety Matrix, USDC, AUSD, and USD0 no longer satisfy Anchorage Digital's internal criteria for long-term resilience," Rachel Anderika, head of global operations at Anchorage, said in a statement justifying the decision. 'Specifically, we identified elevated concentration risks associated with their issuer structures — something we believe institutions should carefully evaluate." "Anchorage Digital is focused on supporting stablecoins that demonstrate strong transparency, independence, security, and alignment with future regulatory expectations," she added. The move came at a time when competition in the stablecoin market is heating up with global banks, payments firms and crypto companies jockeying for position in the rapidly-growing sector. The U.S. Senate recently passed the GENIUS Act that aims to enact clear rules for the asset class and issuers, which could open the gates for broader adoption. On Friday, White House crypto czar David Sacks suggested that the bill may become law as soon as next month, pending passage in the House of Representatives. Reports by Citi and Standard Chartered reports projected the asset class to grow from the current $250 billion to trillions through the next few years. Circle (CRCL), the company behind the USDC token, recently went public and skyrocketed in valuation. Anchorage gave USDC a score of 2 out of 5 for regulatory oversight and reserve management. The report said there was "no substantive prudential oversight" and that Circle had a large — about 15% — amount of its reserves held in cash at banks. Notably, USDC depegged temporarily in March 2023 when partner bank Silicon Valley Bank went under. Tether's USDT, the world's largest stablecoin, had a higher rating with Anchorage pointing to it being regulated in El Salvador. S&P Ratings rated USDC "strong," its second-best rating in its stablecoin stability assessment. Bluechip, a crypto-native stablecoin rating firm, gave USDC a B+ rating in its economic safety rating. Anchorage's decision met with fierce pushback. Nick Van Eck, whose firm Agora issues AUSD, accused Anchorage of misrepresenting facts about his stablecoin and failing to disclose its commercial interest in Global Dollar. USDG is issued by Paxos and is backed by a consortium of firms that share the income from the reserve assets backing the token. Anchorage is a founding partner in that consortium. "If Anchorage had just delisted USDC and AUSD to prioritize the stablecoins that they have an economic interest in, I would understand it as a business decision," he said in an X post. "But attempting to delegitimize AUSD and USDC for 'security concerns,' while knowingly publishing false information, is unserious and bizarre." "Never seen such an obvious hit piece be so poorly executed," said Viktor Bunin, protocol specialist at digital asset exchange Coinbase. Coinbase jointly launched USDC with Circle in 2018, and shared revenue from the reserve assets backing the token. Jan Van Eck, father of Nick Van Eck and CEO of asset manager Van Eck, which manages AUSD's backing assets, also questioned the risk assessment. "If you need a laugh, check out this 'safety' matrix before Anchorage pulls it down. According to the matrix, Circle's USDC (world's second largest stablecoin) and AUSD (backed 100% by treasuries) have reserve issues," he posted on X. "Oh, and by the way, AUSD's reserve manager is regulated by umpteen different regulators." Circle, in a statement sent to CoinDesk, defended the firm's "long-standing compliance record" and "strong reputation as an industry leader." "We comply with the prevailing U.S. regulatory standards that apply to leading fintech and payments firms, and we were the first stablecoin issuer to achieve full compliance with the European Union's landmark crypto law," a Circle spokesperson said. "USDC is 100% backed by fiat-denominated reserves and has robust primary liquidity through a well-developed network of banks, representing what we view as the highest levels of transparency, safety, and operational resiliency in our industry." Support came for Circle and Agora outside of the two stablecoins' camp. "For the record, BitGo is not dropping USDC support," said Chen Fang, chief revenue officer at crypto custodian BitGo. "Agora and Circle are long-standing partners of ours, and our customers count on safe, transparent rails for USD settlement," said Joshua Lim, co-head of markets at crypto prime broker FalconX, adding that his company "is ready to support clients using AUSD and USDC." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Anchorage CEO: Stablecoins to become ‘core plumbing' in finance
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Crypto-focused bank Anchorage Digital placed its bets on stablecoins last month when it unveiled plans to acquire stablecoin issuer Mountain Protocol for an undisclosed sum. It's been a big year for the novel technology, which is meant to maintain a stable value by being pegged to fiat currency like the U.S. dollar. Major stablecoin issuer Circle filed its initial public offering in May, and as of Wednesday its stock price has surged over 160%. Fiserv launched a stablecoin in collaboration with Circle on Monday; JPMorgan Chase launched a stablecoin-like token for institutional clients early this month; and the GENIUS Act – meant to create a regulatory framework for the tokens – is moving through the legislature. Stablecoins are 'cornerstone' to Anchorage's long-term vision and 'foundational' to the future of finance, CEO and co-founder Nathan McCauley said – 'not just as payment tools, but as critical infrastructure that powers tokenized assets, decentralized finance, and next-generation financial products.' In a recent email interview with Banking Dive, McCauley detailed his thoughts on how stablecoins are both foundational technology and a bridge to other innovations. '[T]hey solve a real-world problem: enabling fast, transparent and programmable movement of value across borders, platforms and asset classes,' he said, and 'they unlock the utility needed for the next wave of innovation, including tokenized assets, on-chain capital markets and real-time financial services.' 'Without stablecoins, tokenized assets don't have a native settlement layer. Without stablecoins, programmable finance can't operate at scale,' McCauley said. 'So, while they may have started as a bridge between crypto and fiat, stablecoins are now becoming core plumbing in the digital financial system.' Editor's note: This interview has been edited for brevity and clarity. NATHAN MCCAULEY: At scale, fully fiat-backed stablecoins are the most viable today — particularly when issued under clear regulatory frameworks and backed by high-quality, short-duration assets like U.S. Treasuries. They offer transparency, simplicity and the predictability that institutions and regulators need to trust and adopt stablecoins at scale. Overcollateralized models, like those used in DeFi, have a role to play — especially in crypto-native environments — but their capital inefficiency and volatility limits broader institutional adoption. As for algorithmic stablecoins, the track record speaks for itself. Without credible, collateral-backed mechanisms, they introduce systemic risk and tend to fail under stress. That may evolve over time, but for now, they're not ready for large-scale, real-world financial applications. Ultimately, institutions are looking for stability, compliance and trust. Fully fiat-backed models check those boxes today — and they're the foundation upon which broader innovation can responsibly build. Some of our biggest challenges today aren't purely technical, but rooted in the need for regulatory clarity. There have been significant steps forward in that direction. The Senate passing the GENIUS Act was a significant step forward, and hopefully once stablecoin legislation passes the House and is signed by the president, it will help facilitate stablecoin adoption while strengthening the U.S. dollar. We can't lose sight of market structure reform since deciding which regulator has jurisdiction over which products and services will be critical to unlocking the clarity market participants need. Another challenge is that not all stablecoins are built the same — and that variability has real operational consequences. From how tokens are issued and burned, to how they handle upgrades or integrate compliance controls, the technical design can vary significantly. That means we often have to tailor our infrastructure on a coin-by-coin basis to ensure the same level of security, traceability and institutional readiness. And finally, there's the 24/7 operational demand. Stablecoins don't follow banking hours, and institutional clients expect real-time movement, compliance and reporting around the clock. Supporting that at scale, while maintaining regulatory-grade security and auditability, is a non-trivial undertaking. Credibility in stablecoins comes down to three things: transparency, regulation and operational integrity. At Anchorage Digital, we evaluate stablecoin issuers with the same rigor institutions apply to counterparties in traditional finance. That starts with transparency: do we have full visibility into the underlying reserves? Are the assets fully backed, held in high-quality, liquid instruments? And are the reserves subject to independent, regular attestation or audit? We also look at regulatory posture. Is the issuer operating under a clear legal framework? Do they have the appropriate licenses? Are they aligned with global standards for compliance, risk management and disclosure? Finally, we assess the issuer's technical and governance infrastructure. Can the stablecoin be integrated securely into institutional workflows? Is the underlying protocol resilient? How are minting and redemption controlled? For us, credibility isn't just about market reputation — it's about whether a stablecoin can meet the operational, regulatory and risk standards our institutional clients expect. Historically, stablecoins gained traction on the retail and crypto-native side — used for trading, remittances and as a dollar proxy in emerging markets. But that's changing fast. Today, the fastest-growing demand is coming from institutions. We're seeing asset managers, fintechs, corporates and even governments exploring stablecoins for treasury management, cross-border payments, instant settlement and on-chain fund distribution. What they need isn't just access to stablecoins — they need the infrastructure to issue, hold, move and integrate them securely and compliantly. That shift reflects a broader trend: stablecoins are evolving from a crypto tool to a core financial primitive. The infrastructure is following that trajectory — moving from retail wallets to institutional custody, compliance and operational tooling at scale. In short: Demand started with retail, but the future is decidedly institutional. We'll see both, but ultimately we believe in a network model like the Global Dollar Network, where network participants share the rewards, and there's a regulated issuer. The key is that successful stablecoins will have proper regulatory frameworks and institutional-grade infrastructure. Not every bank or fintech firm needs to issue their own coin, but many will participate through partnerships or specialized applications. In a year, we expect the stablecoin landscape to be more regulated, more institutionally adopted and more globally relevant. You'll see increased clarity from U.S. and international regulators, more banks and fintechs entering the issuance space, and growing demand for yield-bearing and tokenized cash equivalents built specifically for enterprise use. In 10 years, stablecoins will be so embedded in the financial system that we won't call them 'stablecoins' anymore — they'll just be part of how money moves. They'll underpin everything from cross-border payments and capital markets settlement to real-time treasury operations and on-chain financial products. And they'll be issued not just by startups but by central banks, major financial institutions and trusted fintech infrastructure providers. What we're witnessing now is the early formation of a new financial standard — one that's faster, more transparent and natively digital. Stablecoins are the on-ramp to that future. Today's payment system will look antiquated in comparison. Recommended Reading Grasshopper lines up new executives amid lending push Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Trump Media Raises Billions for Bitcoin, Shares Tumble
May 28 - Trump Media (NASDAQ:DJT) said it has secured $2.5 billion from institutional investors to build one of the largest bitcoin treasuries by a public company. The financing comprises $1.5 billion in common stock and $1 billion in convertible notes, with proceeds earmarked for bitcoin purchases. Anchorage Digital and will custody the digital assets. Warning! GuruFocus has detected 4 Warning Signs with DJT. Shares of Trump Media slid about 10% on Tuesday, trimming the stock's year-to-date gains as investors weighed the pivot from social media to financial services. The company's market value stands near $5.3 billion despite reporting just $3.6 million in revenue and a $400 million loss in 2024. The announcement comes as Bitcoin 2025, the year's premier crypto conference, unfolds in Las Vegas, where Trump's team has touted his role as the country's first crypto president. About 50 institutional subscribers have signed agreements to back the deal. Donald Trump indirectly controls over 114 million shares through a revocable trust. Chief Executive Devin Nunes described bitcoin as a crown jewel asset and signaled further strategic acquisitions to bolster the treasury. This move mirrors trends set by MicroStrategy (NASDAQ:MSTR) and other politically aligned firms converting corporate cash into bitcoin, underscoring the growing appeal of digital assets as a hedge against traditional banking constraints. This article first appeared on GuruFocus.
Yahoo
28-05-2025
- Business
- Yahoo
Trump Media Raises Billions for Bitcoin, Shares Tumble
May 28 - Trump Media (NASDAQ:DJT) said it has secured $2.5 billion from institutional investors to build one of the largest bitcoin treasuries by a public company. The financing comprises $1.5 billion in common stock and $1 billion in convertible notes, with proceeds earmarked for bitcoin purchases. Anchorage Digital and will custody the digital assets. Warning! GuruFocus has detected 4 Warning Signs with DJT. Shares of Trump Media slid about 10% on Tuesday, trimming the stock's year-to-date gains as investors weighed the pivot from social media to financial services. The company's market value stands near $5.3 billion despite reporting just $3.6 million in revenue and a $400 million loss in 2024. The announcement comes as Bitcoin 2025, the year's premier crypto conference, unfolds in Las Vegas, where Trump's team has touted his role as the country's first crypto president. About 50 institutional subscribers have signed agreements to back the deal. Donald Trump indirectly controls over 114 million shares through a revocable trust. Chief Executive Devin Nunes described bitcoin as a crown jewel asset and signaled further strategic acquisitions to bolster the treasury. This move mirrors trends set by MicroStrategy (NASDAQ:MSTR) and other politically aligned firms converting corporate cash into bitcoin, underscoring the growing appeal of digital assets as a hedge against traditional banking constraints. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
NBC News
27-05-2025
- Business
- NBC News
Trump Media says it's raising $2.5 billion to buy bitcoin
LAS VEGAS — Trump Media announced Tuesday a $2.5 billion raise from institutional investors to bankroll one of the largest bitcoin treasury allocations by a public company. Shares of the company fell about 10% following the news. It's the latest and most ambitious move in its evolution from a free-speech social platform to a financial services player. The deal includes $1.5 billion in common stock and $1 billion in convertible notes, with proceeds earmarked for the purchase of bitcoin, which the company will now hold as a core treasury asset. the company said it has subscription agreements with about 50 institutional investors. The company also confirmed the bitcoin will be held with Anchorage Digital and — the same platform that recently inked a deal to help Trump Media launch its first exchange-traded funds. The announcement comes as bitcoin nears record highs and the year's biggest gathering of digital asset enthusiasts gets underway on the Las Vegas Strip: Bitcoin 2025. The conference helped solidify President Donald Trump 's image as the country's first ' crypto president.' This year, it's a full-court press from the Trump White House at the conference, with Vice President JD Vance, Don and Eric Trump, crypto czar David Sacks, and other top officials all attending. Trump Media's stock remains volatile, with shares down nearly 30% this year so far. The company has a market cap of about $5.3 billion, despite reporting just $3.6 million in revenue and a $400 million loss in 2024. Trump indirectly owns more than 114 million shares of Trump Media through a revocable trust. Devin Nunes, the company's CEO and a former California congressman, called bitcoin an 'apex instrument of financial freedom' and said this was just the first of many 'crown jewel' acquisitions the firm would pursue. He framed the move as a defensive strategy, saying it would help protect the company from what he described as ongoing 'discrimination by financial institutions' against conservative businesses. The firm has already inked a partnership with to bring a series of ETFs and digital asset products to market later this year, pending regulatory approval. Those funds will include baskets of crypto like bitcoin and native token, cronos, alongside traditional securities. They will be branded under Trump Media and offered to global investors across major brokerage platforms and on the app, which has more than 140 million users worldwide. The move deepens Trump's crypto footprint: World Liberty Financial, another Trump-affiliated entity, has already amassed a significant crypto stockpile, and the president signed an executive order earlier this year designed to establish a bitcoin reserve and a separate crypto stockpile for the federal government. The expansion into financial services builds on rising Republican anger over perceived banking discrimination against conservatives. Crypto industry leaders have also been testifying on Capitol Hill about the industry's struggle with debanking during President Joe Biden' s administration. Trump himself voiced frustration with Bank of America and JPMorgan executives during a recent appearance at the World Economic Forum in Davos, accusing them of 'locking out' conservative clients. The launch of along with the growing popularity of Trump-linked cryptocurrencies, appears to be the private sector response. The $2.5 billion bitcoin treasury move also follows a growing trend among politically-aligned businesses that are converting their corporate treasuries into bitcoin-heavy vehicles. It's a strategy popularized by Michael Saylor's MicroStrategy in 2020 — but now turbocharged by Trump's political movement and crypto allies. Jack Mallers is looking to rival Strategy with a new bitcoin company backed by Tether and SoftBank, and David Bailey, the architect behind another Trump-linked bitcoin play — Nakamoto Holdings — recently led a $710 million merger with healthcare firm KindlyMD, which will pivot from holistic opioid recovery to a crypto-first strategy. Bailey, a trusted crypto advisor to the Trump administration, described the play as: 'Strategy, squared.' 'Our total focus is on increasing the bitcoin per share,' Bailey previously told CNBC, outlining plans to acquire bitcoin-native companies across every major capital market.
